‘Bullying practice’: China retaliates against Trump with 34% tariff on US goods

​The escalating trade conflict between the United States and China has reached a new peak. In response to President Donald Trump’s recent tariff increases on Chinese imports, China has announced a sweeping 34% tariff on all U.S. goods, effective April 10, 2025. This move marks a significant escalation in the ongoing trade war between the world’s two largest economies.​The Guardian+1BBC News+1WSJBBC News

Background of the Trade Dispute

The trade tensions between the U.S. and China have been intensifying over the past few years. President Trump’s administration has consistently accused China of unfair trade practices, including intellectual property theft and forced technology transfers. In response, the U.S. has imposed several rounds of tariffs on Chinese goods, aiming to pressure Beijing into making significant economic reforms. China has consistently retaliated with its own tariffs, leading to a tit-for-tat escalation that has unsettled global markets.​

China’s Retaliatory Measures

China’s latest response is particularly severe. The 34% tariff will apply to all U.S. goods entering China, affecting approximately $143.5 billion worth of exports. This is the first time China has imposed tariffs on all American goods without exceptions. In addition to the tariffs, Beijing has implemented export controls on rare-earth minerals, which are crucial for various industries, including electronics and defense. Furthermore, over two dozen American companies, including DuPont, are facing restrictions and investigations.​Latest news & breaking headlines+2WSJ+2Al Jazeera+2

Economic Implications

The immediate impact of these measures has been a sharp decline in global stock markets. The S&P 500 dropped 6%, reflecting investor concerns about the escalating trade war’s potential to trigger a global recession. Economists warn that the increased tariffs will likely lead to higher consumer prices and disrupted supply chains, affecting businesses and consumers worldwide.​Barron’s+2WSJ+2The Guardian+2

Political Reactions

The U.S. administration has defended its tariff strategy, asserting that it is necessary to address longstanding trade imbalances and protect American industries. President Trump has maintained that these measures are crucial for reasserting U.S. manufacturing prowess. However, critics argue that the approach is exacerbating economic tensions and harming global trade relationships.​Latest news & breaking headlines

Internationally, there is growing concern about the broader implications of the U.S.-China trade war. The International Monetary Fund (IMF) has warned that the escalating tariffs could significantly hinder global economic growth and increase inflationary pressures. Other countries, including key U.S. allies, are also feeling the strain, with some considering their own retaliatory measures or seeking exemptions from U.S. tariffs.​The Guardian

Potential Path Forward

The current trajectory suggests a deepening of the trade conflict, with both sides showing a willingness to implement increasingly severe measures. Former Goldman Sachs CEO Lloyd Blankfein has urged President Trump to delay the imposition of further tariffs by six months to allow for negotiations. He suggests that maintaining the base 10% tariff but postponing additional measures could provide a window for diplomatic discussions and potentially avert further economic damage. ​New York Post

However, the prospects for a negotiated settlement remain uncertain. The erosion of trust between the U.S. and China, coupled with the complex nature of the issues at hand, makes a swift resolution challenging. Both nations appear to be preparing for a prolonged standoff, which could have lasting implications for the global economy.​

Conclusion

China’s imposition of a 34% tariff on all U.S. goods represents a significant escalation in the ongoing trade war with the United States. The move underscores the deepening rift between the two economic superpowers and highlights the challenges of resolving complex trade disputes through unilateral measures. As both nations continue to implement retaliatory actions, the global economy faces increased uncertainty, with potential repercussions for businesses and consumers worldwide. The situation calls for renewed diplomatic efforts and a commitment to multilateral solutions to address the underlying issues driving the conflict.

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